Perhaps it comes down to helping South Africans trust that if they can do it on paper, they can do it in real life, and build real financial confidence.
South Africa has reached its highest financial confidence level yet, after three years, but we still struggle to turn this confidence into consistent long-term action.
Local consumers’ financial confidence reached its highest level in three years, rising from 47 in 2024 to 53 (out of 100) in 2025, according to the 2025 Sanlam Financial Confidence Index (FCI). The study reveals that the nation feels more in control of its finances, yet still struggles to turn that confidence into action in the long term.
After years of economic instability, South Africans appear to be recalibrating their relationship with money. Many find strength in structure, as half of the respondents say they could recover from a financial setback, 11% more than last year.
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South Africa is a nation in recovery
Kele Boakgomo, a behavioural scientist and CEO of Yugrow, notes that this reflects a nation in recovery, “We are seeing a collective shift from survival mode to control. Financial stress forced consumers to adopt new habits. Consumers are protecting what they have, prioritising stability and learning to manage uncertainty. The next step is helping them turn control into long-term capability.”
A total of 1 512 consumers between the ages of 20 and 70, with personal income of at least R1 000 per month, participated in the survey for the index.
Lee Hancox, head of channel and segment marketing at SanlamConnect, says the growth in confidence may reflect a broader economic shift as the prime lending rate dropped from a peak of 11.75% in 2023 to 10.50% in 2025, easing debt pressure and unlocking more disposable income.
“Real salaries are increasing for the first time in seven years, and inflation is stabilising, giving households a renewed sense of control. However, gaps remain, and we still see a worrying lag in financial wellness.”
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Financially confident nation, but behaviour must catch up
Hancox says South Africans are a confident nation — on paper, as these numbers from the survey show:
- Two in five people now have a high or very high Financial Confidence Index (FCI) score, compared to just 27% in 2024.
- Encouragingly, 68% say they have the courage to live within their means, a 10% increase from last year.
- 63% feel on track to pay off debt, 21% more than last year.
- 58% believe they have the financial freedom to make life choices they enjoy, an increase of 38%.
However, Hancox points out, while optimism is growing, behaviour has not yet caught up, as these numbers show:
- Less than half of South Africans wrote down their long-term goals or tracked them.
- Only 42% trust their own financial abilities
- Financial Wellbeing (32) still lags well behind Financial Self-Determination (61) and Resilience (58).
After so many years of economic instability, South Africans appear to be recalibrating their relationship with money, but Boakgomo says there is still a confidence–action gap. “Confidence is only the first mile of change. People increasingly believe in their financial potential, but still struggle to build habits and systems that turn optimism into outcomes.
“The next evolution will come from tools that make progress visible and habits automatic. When saving, tracking and paying down debt become part of daily life, confidence turns into capability.”
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Well-being gap still holds SA back despite high confidence level
Despite the good progress, emotional scars from years of volatility persist among South African consumers. Most of them still feel stressed about their daily finances (74%) and unhappy with their current financial situation (72%), while two-thirds feel uncomfortable talking about money.
Hancox points out that these feelings often stem from inherited money narratives. “Our family circumstances shape deep-seated beliefs about money, beliefs that linger long after our situations change.
“Many people still carry the fear or shame they grew up with. We must start having real, open conversations and normalise money talk as an act of empowerment. Awareness is the first step; advice is the next.”
Interest rates are coming down, and real salaries are increasing for the first time in seven years, but people continue to feel the impact of high interest rates and income loss from Covid-19.
Hancox says this may dampen confidence in people’s beliefs that they can build wealth in the future, while global uncertainty is also taking a toll with the spike in mental health issues, suggesting many South Africans are struggling with well-being.
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Gen Z effect comes into play with confidence
According to the survey, Gen Z leads across every measure, from Self-Determination (70) to Resilience (64), driven by optimism, digital fluency and openness to financial learning. Millennials are not far behind, while Gen X and Baby Boomers, often stretched by multigenerational care or retirement pressures, trail behind.
Hancox sees this as a generational turning point, with Gen Z’s optimism offering an incredible opportunity. “They are open to learning, curious and digitally empowered. Our job is to meet them with the consideration and creativity they deserve, the tools, content and advice that fit their world.
“At Sanlam, we saw this work through initiatives like Money MeetUps, matching advisers to everyday South Africans and The F-Word Comedy Show, which uses our shared language of laughter to get South Africans talking about the F-Word, our finances.”
Gen Zs also seem to be hustling hard, according to the survey. “Their side hustles and multiple income streams may be making them feel more secure about their futures, but they must invest their money and focus on growing wealth.”
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We must turn emotion into evidence
Hancox says sustainable progress lies in closing the space between what people know and what they live.
“Financial literacy must deepen in classrooms and campaigns. It must show up in people’s daily choices, their family conversations and the tools they use.
“Our mission has always been to turn information into empowerment and empowerment into generational prosperity. Confidence is what ignites change, but consistency is what cements it. When we design for both, we move closer to a future where financial confidence isn’t the exception, it’s our national norm.”
